The
year 1998-99 was not very different from previous years and post nuclear scenario caused
further economic slow down affecting underwriting of new leases. Now, there seems to be a
visible change in investors' sentiments. In the absence of other sources for medium-term
funds, borrowers will be looking towards the leasing sector to meet their funds
requirement. The volume of business is expected to grow. Higher volume may compensate for
the shrinking spread. However, ultimate profit margins will be depended on a number of
other factors.

The
Karachi Cotton Association (KCA) has strongly opposed the intervention by the public
sector into cotton or other commodity trade in Pakistan. The KCA's board of directors has
called the increasing involvement of the public sector into cotton trade against the
principle of free market economy. A new cotton policy is due next month which is expected
to provide maximum benefits to the growers.

"The
nation is facing the challenge not only to achieve growth but to achieve sustained growth
which is consistent with the highest values in the interest of the country. "We do
have the potential to grow but since we are already left far behind, we need to accelerate
our endeavour to create new initiatives", it was recommended by the conference on
Human Resource organized by Pakistan Society for Training and Development."

Pakistan's
economic performance over the last several years has been disappointing. Serious lapses in
implementation of structural reforms and stabilization policies have been mainly
responsible for current economic problems. PAGE reports the mid-year review of
economic performance.